The divorce of entertainment mogul David Geffen from his younger husband has captivated public attention, not just because of the staggering amounts of money involved, but because it highlights issues that many high-net-worth couples face when their marriages end. While the Geffen divorce is playing out under California law, the principles at stake—asset valuation, privacy concerns, disparate income levels, and public scrutiny—are equally relevant to wealthy couples divorcing in Illinois.
As a Chicago divorce attorney who has guided numerous high-net-worth clients through complex marital dissolutions, I've seen firsthand how the stakes escalate when substantial assets are involved. The Geffen case provides an excellent opportunity to examine how Illinois law would approach similar circumstances and what lessons Illinois residents can draw from this high-profile split.
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Understanding Illinois High-Net-Worth Divorce Law
Illinois operates under an equitable distribution framework for dividing marital property, as outlined in the Illinois Marriage and Dissolution of Marriage Act, specifically 750 ILCS 5/503. Unlike community property states such as California, Illinois doesn't automatically divide assets 50/50. Instead, courts consider multiple factors to determine what constitutes a "fair and equitable" division.
This distinction matters enormously in high-net-worth cases. In a billion-dollar divorce like Geffen's, the difference between a 50/50 split and a 60/40 split could mean hundreds of millions of dollars.
Key Factors Illinois Courts Consider
Under 750 ILCS 5/503(d), Illinois courts examine numerous factors when dividing marital property, including:
In cases involving substantial wealth, the "contribution" factor becomes particularly complex. Did one spouse build a business empire while the other managed the household and social obligations? Did both spouses contribute professionally? These questions significantly impact asset division.
Valuation Challenges in Ultra-High-Net-Worth Divorces
When you're dealing with assets in the hundreds of millions or billions, valuation becomes extraordinarily complicated. The Geffen divorce reportedly involves interests in entertainment companies, real estate holdings, art collections, and various investment vehicles—each requiring specialized expertise to value accurately.
Business Interests and Intellectual Property
In Illinois, business valuations for divorce purposes typically employ three methodologies:
1. Asset-based approach: What are the company's tangible and intangible assets worth?
For entertainment moguls like Geffen, intellectual property rights add another layer of complexity. Royalty streams, licensing agreements, and ongoing projects may generate income for decades. Illinois courts have consistently held that the marital portion of such assets must be valued and divided, as established in cases like In re Marriage of Heroy, 385 Ill. App. 3d 640 (2008).
Consider this realistic Illinois scenario: A spouse owns a tech company founded during the marriage. At filing, the company is valued at $50 million. By the time the divorce finalizes eighteen months later, the company has gone public and is worth $200 million. Which valuation applies?
Illinois courts generally use the date of trial or a date as close to dissolution as possible for valuation purposes, though this isn't absolute. In In re Marriage of Drury, 317 Ill. App. 3d 201 (2000), the court emphasized that the valuation date should ensure equity between the parties. If one spouse deliberately delayed proceedings to benefit from asset appreciation they alone controlled, the court might use an earlier date.
Art, Real Estate, and Collectibles
High-net-worth individuals often hold significant wealth in tangible assets. Geffen is known for his extraordinary art collection, reportedly worth hundreds of millions. In Illinois, such collections are marital property if acquired during the marriage, regardless of whose name appears on the certificate of authenticity.
I recently represented a client whose spouse had accumulated a wine collection valued at $3.2 million during their marriage. The opposing counsel initially tried to argue it was a personal hobby, not a marital asset. We successfully demonstrated that the systematic acquisition, professional storage, and investment-grade nature of the collection made it a clear marital asset subject to division.
Real estate presents its own challenges. Illinois courts must determine:
In one case, my client owned a Gold Coast penthouse purchased before marriage for $2 million. During the marriage, it appreciated to $5.5 million. We successfully argued that the appreciation was largely passive (market-driven), making only a portion marital property. This saved my client approximately $1.4 million in the settlement.
Spousal Maintenance in High-Income Divorces
When there's a significant income disparity—as is often the case when one spouse is a billionaire mogul—spousal maintenance (alimony) becomes a critical issue.
Illinois substantially reformed its maintenance statutes in 2019. Under 750 ILCS 5/504, courts now consider:
For marriages over 20 years, Illinois provides a formula: maintenance is 33.33% of the payor's net income minus 25% of the payee's net income, but the total cannot leave the recipient with more than 40% of the combined net income.
However, this formula has a critical limitation: it only applies when the combined gross income is less than $500,000 annually. For ultra-high-net-worth cases, courts have complete discretion.
Calculating Maintenance for High Earners
Let's examine a realistic Chicago scenario:
Spouse A (the primary earner) has an annual income of $8 million from business interests and investments. Spouse B left a promising legal career early in the marriage to support Spouse A's business development and raise their children. Spouse B now earns $150,000 annually. They were married for 24 years.
Because their combined income exceeds $500,000, the statutory formula doesn't apply. Instead, the court exercises discretion based on the factors listed above. In this scenario, I would argue for maintenance of $300,000-$400,000 monthly ($3.6-$4.8 million annually) based on:
In Illinois, maintenance for marriages of 20+ years can be permanent, though the 2019 reforms favor reviewable maintenance even in long-term marriages. This means the court might order maintenance for a set period (perhaps 10-15 years) or make it reviewable at a future date rather than automatically permanent.
Privacy Concerns and Public Scrutiny
The Geffen divorce has become a "very public battle," according to reports. For high-net-worth individuals, maintaining privacy during divorce proceedings is often as important as the financial outcome.
Illinois offers several mechanisms to protect privacy:
Sealed Records and Confidentiality Orders
Under Illinois Supreme Court Rules, parties can motion to seal court records when disclosure would cause significant harm. Illinois courts balance the public's right to access court records against legitimate privacy interests.
In my practice, I've successfully obtained sealing orders for:
However, Illinois courts don't automatically grant these motions. You must demonstrate specific, articulable harm that outweighs the presumption of public access.
Alternative Dispute Resolution
Many high-net-worth clients prefer private mediation or arbitration to keep their affairs out of public courtrooms entirely. These ADR methods offer:
I recently guided a client worth approximately $85 million through private arbitration. We selected a retired judge with extensive experience in complex property division. The entire process, from initial session to final agreement, took seven months—compared to the 18-24 months typical for contested high-net-worth divorces in Cook County courts.
The arbitration cost approximately $120,000 in fees (split between parties), but the privacy, speed, and reduced attorney fees (because of the shortened timeline) made it worthwhile.
Prenuptial and Postnuptial Agreements: Prevention Is Worth Billions
While we don't know if the Geffens had a prenuptial agreement, such agreements are absolutely essential for high-net-worth individuals entering marriage.
Illinois law strongly favors prenuptial agreements when properly executed. Under 750 ILCS 5/510, a prenuptial agreement is unenforceable only if:
1. The party challenging it proves they didn't execute it voluntarily, OR
This is a high bar. Illinois courts rarely invalidate properly drafted prenuptial agreements.
What Makes a Prenup Enforceable?
Based on my 15+ years drafting these agreements, here are the essential elements:
Full Financial Disclosure: Each party must provide complete, accurate disclosure of their assets, debts, and income. Attach detailed financial statements as exhibits.
Independent Counsel: Each party should have their own attorney review the agreement. This is critical to defeating claims of coercion or lack of understanding.
Reasonable Time for Review: Present the agreement at least 30-60 days before the wedding. Last-minute agreements face heightened scrutiny.
Fairness: While prenups don't need to be equal, they shouldn't be so one-sided that a court deems them unconscionable.
Proper Execution: Both parties must sign voluntarily, ideally with witnesses and notarization.
Sample Provisions for High-Net-Worth Prenups
For clients with substantial assets, I typically include:
One recent client, a tech entrepreneur worth $40 million at marriage, wanted to protect both his existing business and any future ventures. We drafted provisions that:
The spouse, represented by competent counsel, negotiated adjustments (increasing the per-year payment to $150,000 and adding cost-of-living adjustments). Both parties signed, and both had certainty about their financial future.
Tax Implications: The Hidden Cost of Divorce
In billion-dollar divorces, tax consequences can dwarf the legal fees. The Geffen divorce surely involves extensive tax planning to minimize the bite to both parties.
Illinois-Specific Tax Considerations
Illinois imposes a flat income tax (currently 4.95%) on all income, including maintenance payments. However, federal tax treatment of spousal maintenance changed dramatically with the 2017 Tax Cuts and Jobs Act.
For divorces finalized after December 31, 2018:
This is a massive shift from prior law. Previously, high-earning spouses could deduct maintenance payments at their (often highest) marginal rate, while recipients paid tax at their (usually lower) rate. This created a "tax arbitrage" that benefited both parties.
Now, the payor loses that deduction. For a high-net-worth Illinois resident in the highest federal bracket (37%) plus the Illinois rate (4.95%), this means paying maintenance with after-tax dollars.
Property Transfer Strategies
Under IRS rules, property transfers between spouses incident to divorce are generally tax-free. However, the receiving spouse takes the transferring spouse's basis in the property. This creates planning opportunities and pitfalls.
Example: Husband owns stock purchased for $1 million (basis) now worth $10 million. If he transfers it to Wife in the divorce, she receives it tax-free but inherits the $1 million basis. If she later sells for $10 million, she owes capital gains tax on $9 million.
Smart divorce planning considers:
I worked with a couple dividing a $20 million portfolio. By strategically allocating low-basis assets to the spouse who didn't plan to sell and high-basis assets to the spouse who needed liquidity, we saved the couple approximately $1.2 million in combined taxes.
Lessons for Illinois Couples from High-Profile Divorces
While most Illinois couples won't face billion-dollar property divisions, the Geffen divorce and others like it offer valuable lessons:
1. Wealth Doesn't Eliminate Conflict
Many people assume that with "enough money to go around," wealthy couples should divorce amicably. In reality, high-net-worth divorces are often more contentious because:
2. Documentation Matters Enormously
In high-asset cases, the spouse with better documentation typically achieves better results. I advise all clients—regardless of net worth—to:
3. Choose Your Attorney Carefully
High-net-worth divorces require attorneys with specific expertise in:
The attorney who handled your home closing or drafted your will may not be equipped for a complex divorce.
4. Consider the Long Game
In ultra-high-net-worth cases, the divorce's immediate financial outcome may be less important than long-term considerations:
5. Protect Your Privacy Proactively
Once your divorce becomes public fodder, it's nearly impossible to put the genie back in the bottle. From the outset:
The Human Element: Emotions in High-Stakes Divorces
Beyond the legal and financial complexities, high-net-worth divorces involve real people experiencing profound emotional upheaval. The public nature of the Geffen divorce surely adds stress to an already difficult situation.
In my practice, I've observed that wealthy clients face unique emotional challenges:
Identity and Self-Worth: For high achievers, divorce can feel like failure—particularly difficult for those accustomed to success in every venture.
Trust Issues: When substantial money is involved, it's difficult to know who's genuinely supportive versus who has ulterior motives.
Control: Successful business people are used to controlling outcomes. Divorce litigation involves surrendering some control to the court system.
Privacy Loss: High-net-worth individuals often value discretion. Divorce proceedings (especially contested ones) expose intimate details.
Social Consequences: In some social and business circles, divorce carries stigma or creates awkward situations.
I always recommend that high-net-worth clients work with therapists experienced in divorce issues. The emotional work supports better legal outcomes—clients who manage their emotions make better strategic decisions.
Working with Financial Experts
No divorce attorney—no matter how experienced—can handle every aspect of a high-net-worth divorce alone. These cases require a team approach.
Certified Divorce Financial Analysts (CDFAs)
CDFAs help clients understand the long-term financial implications of settlement options. They can:
I worked with a client offered two settlement options: Option A provided $8 million in liquid assets, while Option B provided $5 million in liquid assets plus a $4 million home. Our CDFA's analysis revealed that Option B's ongoing costs (property taxes, maintenance, insurance) would exceed $200,000 annually—essentially requiring the client to "pay" for the privilege of keeping the home. The client chose Option A and purchased a more modest property, preserving wealth.
Forensic Accountants
When you suspect hidden assets or income manipulation, forensic accountants are invaluable. They can:
In one case, my client's spouse claimed his business earned only $300,000 annually. We engaged a forensic accountant who discovered:
The forensic analysis revealed the spouse's true annual income exceeded $650,000—more than double what he claimed. This dramatically affected both maintenance and property division.
Business Valuation Experts
When business interests are involved, credentialed valuation experts (CVAs, ABVs, or ASAs) are essential. They provide:
The right expert can mean millions of dollars difference in outcome.
When Litigation Is Necessary
Despite best efforts at settlement, some high-net-worth divorces must be litigated. The Geffen divorce appears headed that direction, given reports of it becoming a "very public battle."
Illinois divorce litigation involves several stages:
Discovery
In high-net-worth cases, discovery is extensive and expensive. Expect:
Discovery in a complex case can easily cost $100,000-$300,000 or more in attorney and expert fees.
Temporary Orders
Before trial, courts often enter temporary orders addressing:
These hearings are critically important. Temporary arrangements often become the status quo that influences final orders.
Trial
Illinois divorce trials in high-net-worth cases can last days or even weeks. The court will hear:
Unlike jury trials, divorce cases are decided by judges alone. The judge has broad discretion in dividing property and awarding maintenance.
Appeals
High-net-worth cases are appealed more frequently than typical divorces because the financial stakes justify the additional legal expense. Illinois appellate courts review trial court decisions under different standards:
This means appellate courts rarely overturn trial court decisions on property division unless the trial judge made clear legal errors or findings completely unsupported by evidence.
Protecting Your Interests in a High-Net-Worth Illinois Divorce
Whether you're the higher-earning spouse or the lower-earning spouse, protecting your interests in a high-net-worth divorce requires strategic action:
For Higher-Earning Spouses:
1. Secure Financial Documentation Early: Ensure you have complete records of all assets, debts, income sources, and business interests.
2. Understand Your Business Valuation: Before your spouse's expert values your business, have your own expert do so. Understand the methodologies and assumptions that will be used.
3. Consider Liquidity: You may need to access cash for settlement or maintenance payments. Plan for liquidity needs.
4. Protect Business Operations: Ensure the divorce doesn't disrupt business operations or relationships with partners, investors, or clients.
5. Address Tax Implications Proactively: Work with your attorney and tax advisor to structure the division tax-efficiently.
For Lower-Earning Spouses:
1. Document Your Contributions: Your contributions to the marriage matter, even if they weren't financial. Document your role in supporting your spouse's career, managing the household, raising children, and maintaining social relationships important to your spouse's business.
2. Understand the Marital Estate: Don't rely solely on your spouse's disclosures. Work with your attorney to ensure complete discovery.
3. Think Long-Term: A settlement that looks generous initially may not adequately provide for your future needs. Work with a CDFA to project long-term outcomes.
4. Don't Undervalue Your Earning Capacity: If you've been out of the workforce, you may have reduced earning capacity. This affects both maintenance awards and property division.
5. Secure Expert Support: You need experts as sophisticated as your spouse's. Don't accept inferior expertise due to cost concerns—your attorney can seek fee contributions from your spouse.
The Path Forward
The David Geffen divorce will likely take months or years to fully resolve, with countless hours of attorney time, expert analysis, and court proceedings. For the parties involved, it's undoubtedly one of the most challenging periods of their lives.
For Illinois couples—whether divorcing with billions, millions, or more modest assets—the lessons remain the same:
High-net-worth divorces are never simple, but with experienced legal counsel and a strategic approach, you can achieve a fair outcome that protects your financial future and allows you to move forward.
Frequently Asked Questions
How does Illinois divide property in high-net-worth divorces differently than typical divorces?
Illinois uses the same legal standard—equitable distribution under 750 ILCS 5/503—for all divorces regardless of asset level. However, high-net-worth cases involve greater complexity in valuation and division. Courts still consider the same factors (contributions to the marriage, duration, economic circumstances, etc.), but applying these factors to businesses, investment portfolios, stock options, and complex assets requires sophisticated financial analysis. Additionally, high-net-worth cases more frequently involve experts, contested valuations, and creative division structures (like offsetting assets rather than liquidating them). The fundamental legal principles remain the same, but their application is exponentially more complex.
Can my spouse hide assets in a high-net-worth divorce, and how can I uncover them?
Unfortunately, asset concealment attempts occur in some high-net-worth divorces. Common hiding strategies include transferring assets to family members or business associates, creating shell companies, maintaining undisclosed offshore accounts, undervaluing business interests, deferring compensation, or overpaying taxes (to recoup refunds later). Illinois law provides powerful discovery tools to uncover hidden assets, including document subpoenas to financial institutions, depositions of third parties, and forensic accounting analysis. Under 750 ILCS 5/503, courts can sanction spouses who fail to disclose assets, potentially awarding the non-disclosing spouse a smaller share of the marital estate. I recommend retaining a forensic accountant early if you suspect concealment—they can trace financial transactions and identify red flags that merit deeper investigation.
What happens to stock options, restricted stock, and deferred compensation in an Illinois divorce?
These assets are marital property to the extent they're earned during the marriage, even if they don't vest until after divorce. Illinois courts have developed formulas to determine the marital portion. For stock options granted during marriage but vesting post-divorce, courts often use a "time rule"—the marital portion equals the total value multiplied by a fraction: years of marriage between grant and filing, divided by years between grant and vesting. For example, if options were granted in Year 1, you filed for divorce in Year 5, and the options vest in Year 10, the marital portion would be 4/9ths (four years of marriage divided by nine years from grant to vesting). The non-employee spouse typically receives their share either through immediate offset (receiving other assets of equivalent value) or through a constructive trust (receiving their portion when the options are exercised). Deferred compensation follows similar principles—the marital portion is determined by when it was earned, not when it's paid.
How long do high-net-worth divorces typically take in Illinois, and what factors affect the timeline?
High-net-worth divorces in Illinois typically take 18-36 months from filing to resolution, significantly longer than typical divorces (which average 6-12 months). Several factors extend the timeline: complex asset discovery (gathering documentation for businesses, investments, and multiple properties takes months), expert analysis (business valuations, forensic accounting, and property appraisals require time), contested valuations (when parties' experts disagree on values, resolution through negotiation or trial takes longer), court scheduling (Cook County and collar county courts have limited trial dates for multi-day trials), and strategic delays (sometimes one party benefits from delay and uses procedural tools to extend proceedings). The most efficient approach is collaborative law or mediation with agreed deadlines, which can resolve cases in 7-12 months. Conversely, highly contentious cases with multiple motions, discovery disputes, and appeals can extend beyond three years.
Is maintenance (alimony) awarded differently in high-net-worth cases, and can it be permanent?
Illinois maintenance law applies to all income levels, but high-net-worth cases receive different treatment in practice. Under 750 ILCS 5/504, the statutory maintenance formula only applies when combined gross income is under $500,000 annually. For higher earners, judges have complete discretion based on statutory factors (income disparity, marital standard of living, contributions to spouse's career, etc.). This means maintenance awards in high-net-worth cases are highly fact-specific and can vary dramatically. Regarding duration, Illinois law changed significantly in 2019. For marriages of 20+ years, courts previously often awarded permanent maintenance. Now, even for long marriages, courts favor reviewable maintenance or maintenance for a specific duration. However, permanent maintenance is still possible, particularly when the recipient spouse has limited earning capacity and the payor can easily afford ongoing support. For a marriage of 25+ years where one spouse has substantial wealth and the other sacrificed career opportunities, courts might order permanent (or indefinitely reviewable) maintenance, especially if the recipient spouse is older with limited ability to become self-supporting.
Should I consider mediation or arbitration instead of litigating my high-net-worth divorce?
Alternative dispute resolution offers significant advantages in high-net-worth cases, though it's not appropriate for every situation. Mediation and arbitration provide: complete confidentiality (proceedings aren't public record), faster resolution (no waiting for court dates), expert decision-makers (you can select a mediator/arbitrator with specific financial expertise), reduced costs (though you pay the neutral's fees, you often save on attorney fees due to efficiency), preserved business relationships (less adversarial than litigation), and creative solutions (not limited to what a court could order). However, ADR has limitations: it requires both parties' agreement (one spouse can refuse), it may not be appropriate when there's suspected asset hiding (court's discovery powers are stronger), and it requires good-faith participation (one party stonewalling can derail the process). I generally recommend attempting mediation first in high-net-worth cases—if successful, you save time, money, and stress; if unsuccessful, you can still litigate. Arbitration works well when parties want a binding decision but prefer privacy and efficiency over the court system. The key is working with ADR professionals experienced in complex financial cases.
Contact an Experienced Chicago High-Net-Worth Divorce Attorney
High-net-worth divorces present unique challenges that require sophisticated legal strategies, expert financial analysis, and experienced counsel. Whether you're facing a seven-figure divorce or a case involving complex business interests, the decisions you make now will affect your financial security for decades.
As a Chicago divorce attorney with extensive experience in high-net-worth marital dissolutions, I understand both the financial complexities and the emotional challenges these cases present. I work with a network of forensic accountants, business valuation experts, tax professionals, and other specialists to ensure my clients receive comprehensive representation.
If you're considering divorce or have been served with divorce papers, early consultation with an experienced attorney is critical. Important decisions about asset protection, business valuation, and legal strategy should be made before positions become entrenched.
Contact my office today for a confidential consultation. We'll review your situation, discuss your goals, and develop a strategic plan to protect your interests throughout the divorce process. Don't let the complexity of a high-net-worth divorce overwhelm you—with the right legal team, you can achieve a fair resolution and move forward with confidence.
Jonathan Steele, Attorney at Law Chicago, Illinois Serving Cook County and surrounding counties in high-net-worth divorce and family law matters
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Written by Jonathan D. Steele
Chicago divorce attorney with cybersecurity certifications (Security+, CEH, ISC2). Illinois Super Lawyers Rising Star 2016-2025.
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